Furniture-inclusive rentals are on the rise: but do they really add value?

Walk through any busy lettings portal this spring and furnished properties are noticeably more prominent than they were five years ago.

No. 14819 from our magazine|2 min read| Published in Magazine on 25 March 2026 by our Marketing Team

Demand from certain tenant groups has grown, operators of short-term and serviced accommodation have raised expectations of what furnished living can look like, and more landlords are considering whether adding furniture could improve their returns or reduce void periods. The question worth asking carefully is whether it genuinely does.

Why the interest is growing

Several converging trends are pushing furnished rentals up the agenda. The growth of co-living and build-to-rent developments, which almost universally offer furnished accommodation as standard, has shifted what a section of the rental market considers normal. Young professionals moving to a new city for work, international tenants, and people relocating at short notice increasingly expect a furnished option and may deprioritise unfurnished properties in their search.

At the same time, the rising cost of furnishing a home from scratch has made furnished rentals more attractive to tenants who would previously have preferred to bring their own belongings. For someone moving into their first rental property, the prospect of not having to purchase a bed, sofa, dining table, and white goods at the outset is a genuine financial relief.

Where furnished lets tend to perform well

The case for furnishing is strongest in specific market segments. City centre properties targeting young professionals and corporate lets are the most obvious examples. In these markets, furnished homes can command a rental premium and attract tenants who are less focused on long-term permanence and more focused on convenience. Student accommodation is another clear case, where furnished provision is effectively an expectation rather than a differentiator.

Holiday let conversions and short-term rental properties operate in a different category altogether, where high-quality furnishing is table stakes rather than an optional extra.

In family-oriented suburban markets, however, the picture is less clear. Families relocating tend to have their own furniture and often actively prefer an unfurnished property that they can make their own. In these markets, furnishing a property may add cost and maintenance responsibility without delivering a meaningful premium in rent or a meaningfully shorter void period.

The costs landlords need to factor in

Furnishing a property is an upfront investment that needs to be considered honestly against the projected returns. A realistic mid-range furnishing of a two-bedroom flat, covering beds, sofas, dining furniture, and basic kitchen equipment, can cost several thousand pounds depending on quality.

Furniture depreciates, requires replacement, and introduces an additional maintenance obligation. Items will be damaged over time, and responsibility for repair or replacement sits with the landlord.

There are also compliance considerations. All upholstered furniture provided in a rental property must meet current fire safety regulations, and landlords need to ensure that any items supplied carry the appropriate safety labels. Keeping records and replacing non-compliant items is an ongoing responsibility that unfurnished landlords do not face.

Does it actually increase returns?

In the right market, yes. Furnished properties in high-demand urban locations can achieve rental premiums of between 10% and 20% over comparable unfurnished homes, and where tenant turnover is naturally higher, the convenience of a furnished let can also reduce the gap between tenancies. However, in markets where unfurnished properties are the norm, the premium is often modest or absent entirely, and the additional costs can erode any advantage.

The honest answer is that furnished letting adds value in some markets and in some circumstances, but it is not a universal rule. Landlords considering the switch are best served by researching their specific local market carefully, speaking to a letting agent with genuine knowledge of local tenant demand, and running the numbers with clear eyes before committing.

Speak to our lettings team about the right strategy for your property

This article was originally published by BriefYourMarket and is reproduced here with their permission.

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